Company Number: 13730358

Analysis Date: 2025-07-29 19:03 UTC

1. Credit Opinion: DECLINE
   ILOCANDIA CO. LTD shows a concerning deterioration in financial position from 2022 to 2023, moving from positive net current assets of £2,798 to net current liabilities of £445. The absence of current assets reported in 2023 (shown as zero) raises questions about liquidity and operational cash flow. Given the micro-entity status and limited financial resources, the company appears unable to comfortably meet short-term obligations. Without evidence of additional funding or significant revenue inflows, the risk of payment default is elevated.

2. Financial Strength:
   The company’s net assets have declined sharply from £2,798 in 2022 to a negative balance of £445 in 2023, indicating erosion of shareholder funds. The total assets less current liabilities have turned negative, a sign of financial weakness. The balance sheet is minimal with no fixed assets reported, and the capital base is very thin. This lack of a financial cushion reduces resilience against adverse events or revenue shortfalls.

3. Cash Flow Assessment:
   Current liabilities in 2023 are £445 with no current assets reported, resulting in negative working capital. This suggests potential liquidity stress and an inability to cover immediate liabilities from available short-term assets. The company operates with a single employee (likely the director), implying limited operational scale and potentially limited cash inflows. The absence of cash or receivables reported calls for closer scrutiny of the company’s cash generation and timing.

4. Monitoring Points:

• Monitor quarterly or interim management accounts for cash flow improvements or additional capital injections.
• Watch for any overdue filings or indications of financial distress such as creditor pressure or director loans.
• Track operational developments and contracts that may improve revenue and cash receipts.
• Review director’s commentary on business strategy and financial outlook for remedial plans.